PowerWash Simulator developer FuturLab has laid off seven staff members following the cancellation of an unrevealed project that had been in development for several years. The studio's CEO, Kirsty Rigden, confirmed the cancellation and subsequent staff reduction, stating that the decision was made as the project was projected to cost more than it would earn.

According to reports, the project's cancellation was announced in June, with work having begun two to three years prior. Sources indicated that team members working on the cancelled project were left without new assignments for weeks. Additionally, some managers and team leads were reportedly not informed about which direct reports would be affected or the reasons behind the layoffs until the last moment, with some laid-off employees stopping work without informing colleagues.

During a company meeting last month, COO Chris Mehers informed the studio of an upcoming redundancy process. Staff were reportedly instructed not to use the term "redundancy" when referring to departing employees, instead using the term "the leavers." The studio clarified that these layoffs were solely related to the cancelled project and would not impact ongoing work on PowerWash Simulator 2.

FuturLab's statement indicated that managers and team leads were excluded from the selection process to avoid them experiencing guilt. The company also suggested the layoffs were handled swiftly to mitigate the stress of prolonged uncertainty for employees regarding their job security. Rigden stated that the decision to cancel the pre-production project, which was not related to the PowerWash franchise, was made because "continuing with it wouldn’t have been a sensible decision."

The studio emphasized its commitment to PowerWash Simulator 2 and its ongoing efforts to prototype new game ideas. FuturLab acknowledged the difficulty of the decision, citing the talent of the departing employees, many of whom had been with the company for a significant period. The company has not explicitly confirmed whether the departures were categorised as redundancies or other forms of separation.